Wealthy U.S. families are increasingly seeking second citizenships and national residences to diversify their risk and hedge against financial uncertainty. This trend has been on the rise, with the number of Americans applying for alternative citizenships outnumbering every other nationality. The concept of building “passport portfolios” consisting of multiple citizenships is becoming more common among the wealthy.
There are several key reasons behind the growing trend of wealthy Americans seeking second citizenships. One of the main drivers is the need for geopolitical stability and flexibility when it comes to travel. Holding citizenship in another country provides an added layer of security for those who are unsure of their welcome abroad or want to have alternatives in case of global instability. Moreover, having a secondary passport can make business travel safer and less conspicuous, especially in high-risk countries or regions.
Portugal, Malta, Greece, and Italy are among the top destinations for Americans looking to acquire supplemental passports. These countries offer various investment programs that provide a pathway to residency and citizenship, along with visa-free travel within Europe. For example, Portugal’s “Golden Visa” program allows individuals to obtain residency and citizenship by investing in a fund or private equity. Similarly, Malta offers a Golden Visa scheme for real estate investments, making it an attractive option for many Americans.
The trend of domicile diversification is not limited to the U.S., as millionaire migration is projected to reach new highs in the coming years. Factors such as wars, government crackdowns on wealth, and political uncertainty are driving wealthy residents of various countries to seek opportunities elsewhere. The U.S. remains a top destination for global millionaires seeking to relocate, with a significant inflow of wealthy individuals each year. Despite the wealth-creation opportunities in the U.S., many millionaires are opting to diversify their assets and establish a Plan B in case of unforeseen circumstances.
The trend of wealthy Americans applying for second citizenships and national residences is a reflection of the changing global landscape. As geopolitical tensions continue to rise and uncertainties persist, having a diverse portfolio of citizenships provides a level of security and flexibility for high-net-worth individuals. By understanding the reasons behind this trend and the benefits it offers, wealthy Americans can make informed decisions about their financial future and ensure they are well-prepared for any challenges that may arise.